If you find yourself in the fortunate position to consider leaving a financial legacy to your heirs, you might want to consider attempting to have a wider reach. A multi-generational estate plan seeks to provide money that will have benefits for several future generations.
While this kind of thinking is often the realm of the ultra-wealthy, it can also apply to those individuals with moderate wealth.
The importance of careful planning
Kiplinger stresses that creating a multi-generational estate plan requires careful planning, communication with heirs and a degree of investment savvy. The goal is to make your money last for decades, perhaps even longer. In this way, it can help your children, your grandchildren and perhaps even your great-grandchildren lead better lives.
While it is true that much of estate planning concentrates on leaving your assets to the next generation, it does not have to have such a narrow focus. You can create a mindset that expands your focus.
One key to accomplishing this is writing down your vision. This written strategy is in addition to the traditional estate planning documents. Depending upon your assets, there might be room left for you to leave specific gifts to your children and grandchildren.
The need to discuss strategies with your family
A multigeneration estate plan is not for everyone, and it falls outside what many people expect. Therefore, it requires a bit of discussion with your family to make sure everyone is on the same page. Serious discussions could even alter your goals.
If you decide this is the right direction for your assets, it requires a specific legal framework. The details will determine in part how successful your plan becomes.